While the real estate market is ever-changing, it's apparent to industry experts and home buyers alike that Fort Worth real estate is on the rise. Economic changes, an evolving job market, and a desire for more spacious housing in a temperate climate factor into our housing market's strength. Examining the trends that played out in 2020, along with reviewing analytics and expert insight, gives us an idea of what's to come in the year ahead. Learn what trends the Fort Worth real estate market is likely to see as the year unfolds.

How has the real estate market been performing?

Over the past few years, Fort Worth's real estate performance shows a strong and growing market with a high demand for housing at all price points. The Fort Worth real estate market has been steadily trending upward for the past five years, with more homebuyer interest in properties at higher price points.

According to a report on housing activity trends from the Texas Real Estate Research Center, median home prices have climbed steadily since 2015. The number of home sales also generally trended upward, with 32,545 sales in 2015 rising to 38,435 sales in 2020.

The Quarterly Housing Report for the Fort Worth-Arlington Metro Division echoed these statistics, showing an 18.3 % increase in metro area sales volume, along with a median price increase of 10.2 % year-over-year in Q4 of 2020. The number of residential property listings and the monthly inventory for all residential properties dropped significantly, declining 49.3 % and 46.1 %, respectively.

The most active zip codes identified in the report were 76028, with a median price of $272,000; 76063 with a median price of $335,000; 76131 with a median price of $268,000; 76179 with a median price of $252,900; and 76244 with a median price of $295,000.

New homes are being built at higher price points, too. Approximately 19% of new construction single-family homes had a price point above $400,000.

Tarrant County showed astonishing year-over-year growth in the number of closed home sales across all price points. Homes priced between $400,000-$500,000 had a 57% jump in closed sales year-over-year, while those in the $500,000-$750,000 range showed 22% growth.

What's important to note is that the luxury market in Tarrant County had the most significant year-over-year growth in closed sales. Homes closed in the $750,000-$1 million range had a 99% increase year-over-year in closed sales. Even more considerable still was the growth in the number of homes closed over the $1M mark, with a 106% growth year-over-year.

While it's difficult to pin down exactly what the coming year and beyond will bring for the market, it's clear that there's a rising demand for Fort Worth homes for sale and a great deal of increased interest in luxury real estate.

How's the future shaping up?

The Fort Worth real estate market started 2021 following the same trends that ended 2020, with both median prices and demand for housing rising. According to the January 2021 Housing Report published by the Greater Fort Worth Association of Realtors, the increased demand has driven Fort Worth median home prices to $259,900 in January 2021, a 15.8% increase from January 2020. Compared to this time last year, the number of active listings is much lower, down 50.8% year-over-year.

The increasing demand and rising median home prices in Fort Worth have not gone unnoticed. Dallas-Fort Worth (DFW) is expected to be one of the nation's hottest housing markets in 2021.

According to a Q4 2020 Home Price Expectations Survey, a panel of experts in the real estate and financial industries say DFW will outperform the national housing market by a significant margin. The survey also includes predictions about the home-value growth in the largest 20 U.S. markets in 2021; DFW ranked sixth in the nation.

More than half of surveyed real-estate experts predict the DFW housing market will outperform the national average in home-value growth this year. In a forecast of local markets, DFW could see combined sales and price growth of 15.7%, ranking the area no. 22 in a list of the top 100 major metro areas in the U.S. for 2021.

The past year's real-estate trends, along with the continued rising demand for Fort Worth homes for sale, suggest that we can expect median home prices to increase significantly throughout 2021. An improving economy with strong job growth will be a contributing factor across Texas metros.

Trends to watch that impact real estate in 2021

Buyer Confidence

Consumer confidence is a crucial factor in determining the success of the real estate market. When buyers feel optimistic about the state of the economy and the job market, they're more likely to make big purchases, real estate included.

Lynn Franco, Senior Director of Economic Indicators at The Conference Board, recently echoed this sentiment, suggesting thoughts on consumers' outlook on the economy and jobs. They see economic conditions improving in the near future. "The percent of consumers who said they intend to purchase a home in the next six months improved, suggesting that the price of home sales should remain robust in early 2021," Franco stated in a press release.

However, this increasing consumer confidence appears to be especially high in Texas for the time being. According to the November 2020 Economic Report, the Texas Consumer Confidence Index accelerated more than six points despite rising reported COVID-19 cases, while the national average fell 8.5 points.

The Fort Worth Job Market

Understanding the Fort Worth job market is essential to identify trends about the future of real estate and indicate what direction the market may be heading.

Like many places nationwide, Fort Worth saw a number of job losses over the past year. The leisure and hospitality sector reported the biggest hit, and the accommodation and food services sector recorded high job losses.

However, Regional Commissioner Michael Hirniak noted in a news release by the U.S. Bureau of Labor Statistics that the local rate of job loss was only 2.5%, compared to a 6% national decline overall, a promising statistic for the Fort Worth area.

Certain industries, like information technology, are booming in Fort Worth, drawing top talent with buying power to the region.

As reported by Culturemap Fort Worth, DFW ranks second on a list of the best tech towns in the U.S., just edging out Silicon Valley and San Francisco. It's only outranked by neighboring city Austin.

A trend of big-name corporations moving their headquarters into Texas has built a strong job market in Fort Worth, particularly in the IT sector. With companies like Lockheed Martin, JPMorgan Chase, Citi, and Deloitte hiring high numbers of skilled workers in the area, the job market has opportunities that will bolster buyer confidence and increase buying power.

Fort Worth's economic recovery and its impact on housing

Economic recovery is a trending topic for 2021 across all markets. Thanks to the competitive housing market, economic recovery will likely be a quicker climb than the 2008 recession.

Record-low mortgage rates and rising demand are driving price growth and increasing the median home prices in the region. A thriving real estate market will be crucial to economic bounce back in Fort Worth and beyond.

According to a Bloomberg piece on the impact of a strong market on economic recovery, the shortage of housing inventory has also led to a rapid recovery in construction jobs and lowered the unemployment rate from its peak in February 2020. These shifts are expected to positively affect consumer spending, employment, and overall economic growth, leading to a faster recovery than in the past.

The Real Estate Trends

In addition to real estate being vital to economic recovery, Fort Worth's strong job market, and high consumer confidence, a few trends may continue that will influence local real estate activity.

Low mortgage rates

Historically low mortgage rates factor into the high volume of activity in the real estate market. Rates aren't expected to rise significantly, even if they do increase toward the end of 2021.

According to one report, Federal Home Loan Mortgage Corporation's 30-year fixed-rate fell to an unprecedented reading below 2.8% and hovered around decades-low interest levels. It's a great time to buy or refinance a home for anyone looking to take advantage of the significant interest savings.

Low mortgage rates are promising for all buyers and especially encouraging to real estate investors who have been waiting for opportunities to buy distressed properties. This year will be ideal for acquiring properties with an eye on a buy-and-hold strategy for building wealth.

Who's buying homes?

Real estate agents shared with D Magazine that since our business was declared essential and real estate activity resumed, they've seen droves of out-of-town buyers looking for homes in the DFW market.

Those once rooted in an area due to their work now can work remotely. It's made thousands question their living arrangements. Why live in a crowded, overpriced city with what used to be a long commute to work when you're no longer commuting?

Now, these buyers want to have a house with specific amenities such as a pool, play spaces for their kids, or separate living and working areas. Buyers and sellers alike realize the value of a home office or a private oasis more than ever before.

We're seeing buyers who want to flee a tightly-packed city who are looking for more square footage and fresh air–something Fort Worth offers. Some want to move closer to family already residing nearby. Some are tired of overpaying for real estate. Thanks to its lower cost of living and higher square footage than places like New York or California, the luxury market in Fort Worth is on the rise. Simply put: buyers get more for their dollar here without sacrificing lifestyle amenities.

There's a noticeable influx of East and West Coast buyers flocking to Fort Worth, but Texans are getting in on the action, too. Native residents are looking at lakefront properties for vacation homes within driving distance. They're seeking spacious retreats and an improved work-play lifestyle.

In addition to out-of-state buyer interest, first-time home buyers made up 66% of Texas buyers between June 2018 and July 2019. This trend will likely continue into this year as well. On a national level, first-time buyers accounted for one-third of all homebuyers in 2020, according to the Texas Homebuyers and Sellers Report. The demand for housing from first-time buyers ripples up across price points.

It will be interesting to see if the data in the Texas 2021 home buyer profiles, which will be released in June, back the anecdotal experiences of increased activity from buyers outside Fort Worth.

Multiple offers

High demand and low inventory are leading to listed homes experiencing multiple offer situations. While it's more competitive at lower price points, we're seeing homes receive several bids from buyers at every level.

Homes in highly desirable Fort Worth neighborhoods are apt to receive high buyer interest. Home sellers should ask their real estate agent about the possibility of multiple buyer offers and be prepared for the scenario.

Areas to Watch

As we move into 2021, real estate activity is expected to be highly active in these neighborhoods.

Arlington Heights

Known for its Museums and proximity to great dining, shopping, and the Cultural District, Arlington Heights draws families and young professionals alike. The craftsman-style homes and suburban feel of the neighborhood, along with its proximity to a variety of activities that appeal to all, will keep demand and real estate activity high in the area.

North of Fort Worth

The most active area, according to a recent report, is located just north of Fort Worth. Zip code 76131, particularly Blue Mound, is shaping up to be an area to watch, with a median home price of $268,000. Keep an eye on Kellar and the rest of the 76244 area, too, where the median home price clocks in at $295,000.

Another of the busiest zip codes for real estate activity includes the neighborhoods of Summerfield, Fossil Creek, Park View, and Stone Glen. These neighborhoods are within the vicinity of outdoor living activities, including The Golf Club at Fossil Creek and Arcadia Trail Park.

Eagle Lake

For those looking to take advantage of waterfront living, the area surrounding Eagle Lake, especially the 76120 zip code, is a great area to explore. With a median home price of $252,900 and lakefront amenities, the neighborhood is a big draw to potential homebuyers.

Rivercrest

An exclusive neighborhood in west Fort Worth, Rivercrest is best known for the beautiful Rivercrest Country Club. The community offers quiet living while still being accessible to the greater city.

The Waterchase Golf Club area

The area surrounding Waterchase Golf Club draws many buyers as well, with reports of high activity near Cobblestone and the 76120 zip code especially. The neighborhood is primely located between Fort Worth and Dallas, and offers quick access to I-30 and I-820.

White Settlement

White Settlement is a close-knit community near Lake Worth, drawing homebuyers seeking lake living. With Lockheed Martin offices located right in town, it's a great neighborhood for anyone seeking a short commute.

Westover Hills

Appealing to even the most discerning of luxury property owners, Westover Hills is best known for being one of Texas's wealthiest towns. With a small population, the residential town offers enormous square footage and expansive views of the surrounding landscape in all directions.

Tanglewood/Westcliff

Located adjacent to Texas Christian University's campus, the area draws many families thanks to the top-rated Tanglewood school system. The range of price points for homes means a lot of activity on the market at all levels.

The Future of Fort Worth Real Estate

Despite changes in the economy and job market, plus recent weather challenges, real estate is still on the upswing, particularly in Fort Worth. Thanks to the high square footage and sizable land that cannot be matched in many metro areas–especially those with a higher cost of living– buyers realize the value of purchasing in Fort Worth.

This rising demand, paired with historically low mortgage rates, is continuing to increase median home prices - a trend that's likely to continue in the Fort Worth real estate market through 2021.

Buying and selling real estate in Fort Worth during 2021 will take an expert touch. That's because the activity is brisk, and opportunities go under contract quickly. Work with the experts at Chicotsky Real Estate Group to secure your dream home. We can support out-of-town buyers and any other accommodations you may need to find the right home for you successfully.